NSR Press Releases

NSR Report: Satellite Capacity Prices Stabilizing, but Looming LEO & VHTS Competition Point to Renewed Pressure

Despite Global Price Declines Averaging 5% in 2021, Industry Approaches Temporary Stabilization

Cambridge, MA – NSR’s latest report, Satellite Capacity Pricing Index, 7th Edition (2021) finds capacity price declines decelerating in 2021, with the global mean price index declining by ~5-6% in Q1 2021, in contrast to ~13% in Q1 2020. This decline is projected to slow further in 2022, with signs of inflation-adjusted price stabilization across several regions, bands, and applications ahead of full deployment and global commercialization of LEO mega-constellations and launch of delayed VHTS programs.

2020 was an inflection year for the industry, not only because COVID-19 precipitated restructuring programs and drove maritime and aero businesses into standby mode, but mainly because LEO mega-constellations made enormous progress, with SpaceX in particular achieving unprecedented cadence levels in satellite manufacturing and launch.

“While contract renegotiations took place across the satcom value chain to address a black-swan drop in demand, unit pricing nears stabilization across several sectors, as forecasted by NSR in previous editions of this report. However, for high data rate applications, the current environment may be the calm before the storm as VHTS satellite programs enter the picture in time for the inevitable competition of LEO mega-constellations,” states Carlos Placido, report co-author.

Consumer Broadband is a quite unique HTS-driven application that is at the heart of the LEO revolution. “In this new edition of the Pricing Index, NSR began to dive into new ways to benchmark HTS satellite broadband pricing. A new, parallel approach provides additional data points for current and future analysis of this fast growing and changing segment,“ states Joseph Ibeh, report co-author.

From broadcasters and DTH operators seeking to optimize satellite distribution costs to residential broadband users considering higher service costs in exchange for faster connections and unlimited traffic, to MNOs requiring higher speed and more symmetrical backhaul connections, to value-chain shifts in managed enterprise VSAT, to mobility users eying a multi-orbit future; every application and region experiences varying degrees of price dynamics and future prospects at such pivotal times.

About the Report

NSR’s Satellite Capacity Pricing Index, 7th Edition (2021), provides the industry’s leading and longest running analysis of satellite capacity pricing worldwide.  SCPI7 study covers all major applications under Video and DTH Broadcasting, Data Networks including Backhaul and Broadband, Mobility (sectioning into Maritime/O&G and Aero for the 6th Edition) and Gov-Mil segments, across 10 regions of the world and FSS and HTS frequency bands.  The report is unparalleled on the depth of insight provided through index prices, ranges and forecasts. Both the proprietary SCPI7 pricing tool and analysis are definitive resources to predict the near to medium term scenarios for the industry and differentiate regional/vertical based forecasts to answer strategic questions on the evolving business models in the satcom industry. In the 2021 edition. NSR added flexible dashboards to analyze and visualize all report data and trends.

For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at +1-617-674-7743.

About NSR

NSR is the leading global market research and consulting firm focused on the satellite and space sectors. NSR’s global team, unparalleled coverage and anticipation of trends with a higher degree of confidence and precision than the competition is the cornerstone of all NSR offerings.  First to market coverage and a transparent, dependable approach sets NSR apart as the key provider of critical insight to the satellite and space industries.  Contact us at info@nsr.com to discuss how we can assist your business.

Companies Profiled or Mentioned in this Report:

APSTAR, Arabsat, Avanti, Disney, Eutelsat, Gogo, HellasSat, Hispasat, HughesNet, Inmarsat, Intelsat, Kacific, Netflix, OneWeb, Orbith, SES, Starlink, Thaicom IPStar, ViaSat, XporeNet, and Yahsat.